At times like this, it is best if we can make a proper diversification in our portfolio. As Warren Buffet said, “don’t put all your eggs in one basket.” But now, it leaves us with a crucial question: “what’s the right basket.”
Diversifying your investment portfolio isn’t only about dividing your money equally into different baskets. It requires a thorough risk-to-reward analysis of every investment option possible, making conjunction with our risk appetite and aligning them with the current national and global economic scheme.
Well, it goes without saying that doing all that is impossible to do by inexperienced ordinary people like us. Fortunately, Ray Dalio, a seasoned investor, hedge fund manager and the founder of Bridgewater Associates, developed an investment diversification system that can sustain through all kinds of economic seasons: the All Weather Portfolio.
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